Will Chinese and Other Asian-Made EVs Miss Out on the UK’s New Electric Car Grant?
If you’ve been eyeing a shiny new electric vehicle (EV) and hoping to snag a government discount, there’s a twist you need to know about. The UK’s latest electric car grant, which promises up to £3,750 off select new EVs, is coming with some strings attached—especially for cars built in China, Korea, Japan, and other Asian countries. Let’s break down what’s changing, why it matters, and how it could shape your next car-buying decision.
What’s Actually Changing With the UK’s Electric Car Grant?
The UK government has set aside a hefty £650 million to encourage more drivers to go electric. On the surface, it sounds simple: buy a qualifying EV and get a chunk of the price knocked off. But the fine print is where things get interesting—and complicated.
To qualify for the full grant, a car must be zero-emission, cost under £37,000 for its entry-level model, and come with a battery warranty covering 100,000 miles or eight years (with a promise to replace the battery if it drops below 70% capacity). So far, so good.
But here’s the catch: the main deciding factor is now an “environmental score” based on where the car—and especially its battery cells—are made. If those batteries come from a country with a carbon-heavy electricity grid, the car could be bumped down to a lower grant band or excluded altogether.
Why Is Battery Manufacturing Location Suddenly So Important?
Batteries are the heart of an EV, but they’re also the dirtiest part to make, at least in terms of carbon emissions. The UK’s new rules put a whopping 70% of the environmental score on the battery’s country of origin, with the rest based on where the car is assembled.
If the battery is made in a country that relies heavily on coal or other fossil fuels for electricity—think China, Korea, or Japan—the car is likely to miss out on the full grant. The government says this is about encouraging cleaner manufacturing, but many industry insiders see it as a way to give UK and European manufacturers a leg up.
How Does This Compare to Other Countries’ EV Incentives?
If this all sounds familiar, it’s because France rolled out a similar system last year. The result? No Chinese brands—or even Western brands building their EVs in China—qualified for the French incentive. That includes models like the Mini Cooper E and Cupra Tavascan, which are built in China for European buyers.
France also factors in the distance a car travels to reach its buyer, which further penalizes Asian imports. The UK isn’t copying that part, but by focusing on grid emissions, it’s still putting Asian-made EVs at a disadvantage.
Which Countries’ EVs Are Most Likely to Qualify?
European-made EVs generally have a better shot, but it’s not a free pass. The UK will assess each country’s grid carbon intensity individually. For example, Poland’s grid is the dirtiest in Europe at 594g CO₂/kWh, according to the European Environmental Agency. That could hurt cars like the Jeep Avenger or any model using batteries from LG Chem’s massive Polish plant.
The Czech Republic and Germany also have relatively high emissions, which could affect brands like Skoda. On the flip side, France’s low-carbon grid means Renault’s new electric models should breeze through the requirements.
The UK itself fares well, with a 2023 grid intensity of 162g CO₂/kWh—much cleaner than the European average. That’s good news for cars like the upcoming Nissan Leaf, which is built in Sunderland with locally sourced batteries.
Are There Other Hurdles for Car Makers?
Absolutely. Beyond the environmental score, manufacturers have to be signed up to the Science Based Targets Initiative (SBTi), which tracks and approves corporate CO₂ reduction goals. Some big names, like Tesla, Hyundai, and Kia, aren’t currently on board, which could knock their cars out of contention for the grant.
There’s also a section on the application form asking about a company’s UK presence and support for local jobs—another nudge for manufacturers to invest in Britain.
What Does This Mean for Car Buyers and the UK Auto Industry?
In the short term, it’s going to be confusing. Car makers are still scrambling to gather evidence and figure out which models will actually qualify. Don’t expect a definitive list of eligible cars right away.
But the bigger picture is clear: the UK wants to reward companies that build cleaner, more local supply chains. That could mean more investment in UK factories and battery plants, which is good for jobs and the environment. It might also persuade brands like Mini to bring EV production back to Britain, rather than relying on imports.
On the flip side, buyers hoping for a deal on popular Chinese, Korean, or Japanese EVs may be disappointed—at least until those countries clean up their electricity grids or manufacturers shift production closer to home.
The Bottom Line for Shoppers
If you’re in the market for a new EV and hoping to take advantage of the UK’s grant, pay close attention to where your chosen model (and its battery) is made. The outcome? Some of the most affordable and innovative EVs from Asia may be off the table for government support, at least for now.
But this shake-up could also mean more choices built right here in the UK or Europe, with cleaner manufacturing to boot. It’s not rocket science—just a new set of rules that could reshape the electric car landscape in Britain for years to come. Keep an eye on updates, as the list of qualifying cars is likely to evolve as manufacturers adapt. And if you’re unsure, ask your dealer for the latest info before you buy.